Matthew, Inc., owns $30$ percent of the outstanding stock of Lindman Company and has the ability

to significantly influence the investee's operations and decision making. On January $1,2021,$ the

balance in the Investment in Lindman account is $$421,000.$ Amortization of excess fair value

associated with the $30\%$ ownership is $$15,400$ per year. In $2021,$ Lindman earns an income

of $$192,000$ and declares cash dividends of $$48,000.$ Previously, in $2020,$ Lindman had sold

inventory costing $$37,800$ to Matthew for $$54,000.$ Matthew consumed all but $25$ percent of this

merchandise during $2020$ and used the rest during $2021.$ Lindman sold additional inventory

costing $$52,800$ to Matthew for $$80,000$ in $2021.$ Matthew did not consume $40$ percent of these

$2021$ purchases from Lindman until $2022.$

a$.$ What amount of equity method income would Matthew recognize in $2021$ from its ownership

interest in Lindman?

b$.$ What is the equity method balance in the Investment in Lindman account at the end of $2021?$